Why model_diagonistics is showing Euler equation, inflation and Taylor rule equations as collinear? Suggestions required…
easy_MSP_without_FGP_4_results.mat (141.5 KB)
Why model_diagonistics is showing Euler equation, inflation and Taylor rule equations as collinear? Suggestions required…
easy_MSP_without_FGP_4_results.mat (141.5 KB)
mat-files are not sufficient for debugging purposes. A mod-file
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Thank you for your promt reply Professor…The prolem has been solved. I did not enter output gap term in Taylor’s rule firstly. After correcting for it, now code is running!